Using Government Registered Funds to Invest in Real Estate
Written by Manjit Rukhra on October 6, 2019
This is probably one of the best-kept secret sources for raising money in North America. Raising government registered funds like RRSP’s (if you're Canadian) or a 401k (if you're American) to purchase and invest in real estate. 

A few years back my wife and I were looking into money sources that we could access to fund our real estate purchases. After having worked with investors and using everything from money sitting in savings accounts, bank deposits, GIC’s and even home equity lines of credit, we wanted to add more sources to our tool belt. Our search led us to learning about how to use government funds to purchase real estate. 

There are billions and billions of dollars sitting in government-registered funds today, most of which are making on average between a 2-6% return. Most of these funds are sitting in local banks, credit unions or investment firms like Investors Group and Edward Jones. What many registered fund holders and most real estate investors don’t know is that you can use these funds to invest in real estate. There is a process, and by following it you'll be able to access one of the largest sources of capital in North America today.

In this article I am going to be talking about how these funds work and how to access them while providing great returns to your lenders. Before I do that, I want to explain why someone would want to move his or her funds over to you. One of the biggest objections I get when chatting with potential lenders is “Won’t I get taxed if I take the funds out and give them to you to buy real estate”? No, you aren’t actually taking out or cashing out your funds. You are making a transfer over from one institution (where there money is sitting) to another. To do this, you first need to be working with a trust company that will be able to facilitate this transfer. There are a few good companies in Canada that facilitate this, we have used Olympia Trust for our business. 

Once you find a property, you want to have your lender work with the trust company to open up a self directed account. Once that is completed and set up the trust company will request their current institution or bank to send over the money. 

When that is completed a lawyer will draw up mortgage documents (this insures your lenders money is secured and is also a great selling point for you), the funds will be sent over to your lawyer to purchase the property. 

You then will pay the return which you and the lender agreed upon. That return, which is usually made up of interest payments is deposited monthly, quarterly or yearly back into the registered account which continues to grow their money. 

The return you pay a lender in their government registered fund is typically around 5% or even as high as 12%. One of the many benefits of why someone would loan you their funds is they get a better return then they can get in the market place, their funds are secured against the title, they know exactly where their money is invested and the returns are more predictable. 

I challenge you to start learning about this amazing strategy and unlock the capital sitting right in front of you in your inner circle. Like any investment opportunity, you want to create and put together opportunities that are win-win for both you and the lender.  

Manjit Rukhra


Manjit Rukhra helps people raise private funds to invest in real estate. He is an expert at helping people raise funds by following his simple system and making things super easy to understand.

If you're interested in raising private funds to buy your first property or buy more property to add to your portfolio then definitely reach out and request a free strategy session today.
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